Overview:
According to previous events, the price has still been trapped between 1.5120 and 1.5190, so it is wise to be careful in this area. Therefore, the first step is waiting for a period of tight sideway range market before breakouts (range is a long-term mean reversion strategy that looks to go against strong divergence from the pair’s average value. It will typically hold trades for an extended period of time and is one of the slower moving trading strategies and the best indicator to be used is the Fibonacci retracement levels). Then, the market seems to be going to start showing the bullish signs. In other words, it will be a good sign to buy above 1.5040 with the first target at 1.5203 and it will climb towards 1.5250. However, If the the pair does not break 1.5255, the market will indicate a bearish opportunity below 1.5255 and the level will act really as strong resistance. It will be a good sign to sell below 1.5255 with the first target at 1.5120 and it will call for downtrend in order to continue bearish movement towards 1.5075 (61.8% Fibonacci retracement levels) into the next week.
Range: 100 pips (daily).
A risk to reward ratio of 1:1.5 is recommended. Risk of 75 pips must make a profit of 150.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.